09-15-09 Special Workshop Minutes (2)SPECIAL/WORKSHOP MEETING
September 15, 2009
A Special/Workshop Meeting of the City Commission of the City of Delray Beach, Florida, was
called to order by Mayor Nelson S. McDuffie in the First Floor Conference Roam at City Hall at
6:00 p.m., on Tuesday, September 15, 2009.
Roll call showed:
Present - Commissioner Gary P. Eliopoulos
Commissioner Fred B. Fetzer
Commissioner Adam Frankel
Mayor Nelson S. McDuffie
Absent - None
Also present were - David T. Harden, City Manager
R. Brian Shutt, City Attorney
Chevelle D. Nubin, City Clerk
Mayor Nelson S. McDuffie called the special meeting to order and announced that it had been
called for the purpose of considering the following Item:
SPECIAL MEETING AGENDA
1. Oath of Office administered to Newly--Appointed City Commission Member:
Angeleta Gray {Swearing-In Ceremony will be held in the Commission Chambers)
Mrs. Gray was sworn in by Chevelle D. Nubin, City Clerk.
Mayor McDuffie briefly commented and thanked everyone for attending.
Mayox McDuffie adjourned the Special Meeting at 6:04 p.m.
WORKSHOP AGENDA
1. Direction regarding the Old School Square Garage, Retail Space
R. Brian Shutt, City Attorney introduced this item. He stated that he gave the Commission a
memo regarding his concerns with the drafts of the proposed lease agreement and purchase and
sale agreement between the City and the proposed purchaser. He also stated that a report from
PMG Associates, Inc. was included and that Phil Gonot is present to explain his analysis of the
report. There is an artist of Pahn Beach County to give a presentation.
It is the Consensus of the Commission to hear the presenters tonight.
Michael Weiner, Attorney with Weiner, Aronson & Mankoff, P.A. stated he is here on behalf of
Tom Kirisloe. He introduced Tom Kinsloe, Randy Singer, and Richard Jones. He presented a
PowerPoint presentation.
Beverly Snow, President of the Artists of Pahn Beach County presented a proposal via
PowerPoint presentation. She gave a brief overview of the organization, and explained how the
retail space will be used. Ms. Snow stated that they are looking for a five year lease or xa:a.ore,
with an option to buy at the end of the lease. They would build out the interior space including
petitions, the bathxootxa area, and install a security system.
Joe Gillie, Executive Director of Old Schaal Square, stated that Old School Square supports the
City Commission exploring the relationship and a possible lease agxeement with the Artists of
Palm Beach County.
Phil Gonot with PMG Associates, Inc. discussed the Lease/Purchase Proposal Old School
Square Parking Garage Report. He recommends that the City reject the proposal from Mr.
Kinsloe and hold on to the space and lease it out for a period of time until the market conditions
improve.
R. Brian Shutt, City Attoxney, discussed the fallowing concerns with the proposed lease
agreement with Mr. Kinslae: 1) during the lease term buyer may have any permitted use {it
would be preferable where the City could exercise more control aver the use until the closing};
2) the irrevocable letter of credit during the build out should be increased above the X100,000.00;
3} the security deposit should be increased from the $10,000.00 that is offered; 4} the agreements
provide that the City pay the dac stamp, the City would like for the buyer to pay the doc stamps;
5} the agreements provide that the City would pay the broker's commission, the City would want
the buyer to pay the broker's commission; and 6) the buyer should only receive a revocable
license for the five (S} parking spaces and to give the parking spaces in the form of a license
agreement.
Joseph Safford, Finance Director stated that the City has a $24 million utility tax bond issue and
that we must stay under $3 million dollars. If we go over the $3 million dollars, it will make the
bonds taxable.
Mr. Harden stated that as far as the build out, we would approach the CRA about help with -the
build out.
It is the Consensus of the Commission for the City Attorney to tape the listed concerns and
work those out with the offer that is on the table right now; and to look at if the City will have
to do some build out next year and take that into consideration.
2. Fire Assessment Fee Consultin Pro asal from Government Services Grou Inc.
Jason Buccholz, Project Manager with Government Services Group, Inc. from Tallahassee
presented this item. He discussed steps required by Florida Statute 197.3632 in order for the
City to develop anon-ad valorem Fire Services Assessment Progratxa. The fast step is to adopt
a resolution of intent prior to December 31, 2009. The approach is divided into two phases
with a projected implementation of the program in FY 2010-2011. Phase One includes tasks for
development of the preliminary pxo£orma rates. An assessment report will be provided at the
end of Phase One. Phase Two includes steps needed if the City decides to proceed with a b'ire
Services Assessment Proposal. Mr. Buccholz stated that the purpose of developing a fire system
is to identify the costs associated with fire protection only that the City can legally charge using a
non-ad valorem assessment program. Once the rates are established, then the City will have to
adopt an ordinance with two public hearings and set some pxeliminary rates.
0911 512 0 0 9
It is the Consensus of the Commission to move forward with the resolution of intent.
3. F'Y 2010 Budget
Mr. Harden, City Manager, presented this item anal discussed the remaining issues regarding the
FY 2010 Budget. He provided Commission with a handout of various millage rate scenarios and
an updated list of passible budget reduction that he does not recommend but could be done.
Commission discussed the remaining issues regarding the FY 2010 Budget.
It is the Consensus of the Commission to reduce the shuttle bus service to two (2) buses and to
set 7.19 as the millage rate.
Mayor McDuffie adjourned the Workshop Meeting at 8:57 p.m.
City Clerk
ATTEST:
MAYOR
The undersigned is the City Clerk of the City of Delray Beach, Florida, and the information
provided herein is the Minutes of the Special/Workshop Meeting of the City Comtr~issian held
on Tuesday, September 15, 2009, which Minutes were formally approved and adopted by the
City Commission on October 6,.2009.
~i~jr~
City Clerk
3 09/15/2009
NOTE TO READER: If the Minutes you have received ate not completed as indicated
above, this means they ate not the official Minutes of the City Cotziniission. They will become
the official Minutes only after review and approval, which may involve amendments, additions
or deletions to the Minutes as set forth above.
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